Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698931883221.pdf (Namibia)
,,., - ~ yL ~" • • ,~, ' Ministry of Mines and Energy Vote: 15 Budget Speech By Hon.

Isok Kotoli, MP 12 April 2013 • Honourable Speaker, and Our Ministry is the custodian of Namibia's rich endowment Energy resources it is my honour and privilege to table to this August House vote 15 01, the Ministry of Mines and Energy.

Our Ministry promotes, regulates and monitors the responsible and sustainable utilisation of these resources for the benefit of all Namibians.

of Mineral.
of Mineral.

Geological facilitates, The Ministry is engaged in activities that have a significant and far-reaching impact on the of the national economy and the wellbeing of the Namibian people.

overall performance as well as ensuring These activities security of supply.
involve mineral exploration, mining, beneficiation Honourable Speaker, Honourable Members, it is my pleasure to present our Ministry's budget proposal according With this in mind, to I will briefly discuss the programmes outlined in the Medium Term Expenditure Framework.

our successes and challenges during the previous financial year while introducing to the house our request, having in mind that report already submitted report and an annual there is an accountability that will follow.

1.
1.

Promotion of Local and Foreign Investment in Exploration and Mining.

for small scale mining During the 2012/2013 financial year, N$17.97million was budgeted projects.

A total of N$13.5million was spent to procure the requisite machinery, equipment and accessories for the implementation of million was used as preconstruction costs for the three small scale mining project The three small scale mining projects are: the projects, while the balance of N$4.47 facilities.
• A Slate stone Cutting and Polishing facility at Noordoewer, • A Cutting and Polishing facility for dimension stone remnants at Karibib in Erongo in the Karas Region.

Region, and; • A Sodalite remnants and semiprecious stone Cutting and Polishing facility at Khorixas, in Kunene Region.
For the 2013/2014 financial year a budget of N$27.847 million has been allocated for the implementation phases of other small scale mining projects that were found to be technically feasible in previous years in other regions.

in Namibia's mining industry.

This is indeed a loss to family members of On a sombre note, during the 2012/2013 financial year a total of recorded victims, additional awareness to the mining industry.
five fatalities were the to fellow workers, employers and the govemment of Namibia.

The Ministry will use resources to increase regular mine visits and intensify health and safety An amount of N$ 57,188,000 has been budgeted to promote local and foreign investment in exploration ensuring that Mineral production benefits the nation.

2 Honourable Speaker, Honourable Members, 2.


Creation of Knowledge of Namibia's Geological Resources Institute for Earth Sciences and Mineral The Geological Survey of Namibia as the National Resources is entrusted with management and research of one of our most important assets - the Earth - in which our life support system is rooted.

The institution's mission is to resources.


Through scientific enhance knowledge and awareness of Namibia's geological investigations as well as application and dissemination of quality research data our the Geological Survey of Namibia are facilitating the search for and the scientists of engineering and land use planning and assessment of mineral sustainable development with due regard to the environment.
resources, geological In order to enhance the understanding of our geo-environment, the Geological Survey of Namibia will continue with a variety of activities, such as the interpretation of the very successful airborne geophysical surveys - which has already led to the discovery of the survey, which allows us to take Husab Uranium Mine; and the regional geochemical the exploitation of informed decisions on land use planning.
The negative impact mineral resources potentially has on the environment is minimised through environmental geology surveys on active and abandoned mines as well as exploration activities, in order to allow for sustainable development activities in Namibia, including conservation.
the various economic that of We have set aside an amount of N$ 41,771,000 to minimise the negative impact of mineral resource exploitation on the environment and enhance the understanding of Namibia's geo-environment including its geological resources.

Honourable Speaker, Honourable Members, 3.

Protection of Namibia's Diamond Industry role in Namibia's economy and still contributing Diamonds continue to play a meaningful towards the state Revenue Fund by way of royalties and taxes.
As a disproportionately strategic resource, their monitoring and regulation remains one of the major priorities for the Ministry.

We have three logistical bases; in Oranjemund, Luderitz and Swakopmund with offices and accommodation for our diamond inspectors.

They monitor all diamond prospecting protected increase of about 37% from 2011 in royalties.

the revenue from our resources is up to N$700 million, an and mining operations to ensure that Last year alone, diamonds contributed at source.
3 Beneficiation of our diamonds has suffered some setbacks resulting from high diamond prices which have helped to diminish margins, the liquidity crises in India - which is the biggest manufacturer of diamonds globally and the economic problems in the USAand Europe which negatively affected consumer confidence.

Unfortunately this has resulted in some retrenchments at diamond cutting and polishing factories nationwide as operations try to stay afloat during this tough economic cycle.
The industry still employs about 1300 employees, and transfers valuable skillsand state-of- the-art technology to our country.

An amount of N$ 16,398,000 will be needed in the mandate Diamond industry.

to protect Namibia's Honourable Speaker, Honourable Members, 4.

Energy Supply and Security The Ministry continues with rural electrification by providing electricity to schools, churches infrastructures in rural areas in all the regions.
and other government We however continue to experience shortage of qualified and experienced contractors hence some rural electrification projects could not be implemented on time.

Furthermore delivery of transformers and other materials from outside the country is still a challenge.

An amount of N$ 85 million is budgeted for 2013/2014 rural electrification programme of which N$ 40 million is set aside for the upgrading of overloaded distribution sub-stations in the country.
The Solar Revolving Fund is operating and increasingly issuing loans to the general public, and we continue supporting the use of Renewable Energy Technologies, through the 13 established Energy Shops in the regions.

The Kudu Gas to Power Project is now in full swing, with partners having signed the Project Development Agreement.
Both the upstream and downstream parties have jacked up their efforts to realise the Final Investment Decision (FID) by March 2014 with the aim of delivering first electricity by 2017.

The Ministry has created a viable and stable petroleum exploration industry in the country with companies of various sizes and nationalities busy exploring for oil and gas in the country.
The year 2013 is going to be a pivotal year as we are going to see three successive wells being drilled by one company (HRT)in a single year.

We will be waiting in anticipation for the results of this drilling campaign and those in the future.

4 The Ministry continues to manage and regulate fuel price, and keep them to a minimum without disturbing the national economy; NEFwill continue to subsidize the energy prices and provide financial support to energy projects for the benefit of Namibian consumers.
Honourable Speaker, Honourable Members, An amount of N$ 131,477,000 is required for the provision of adequate supply of energy to the nation.

6.

Coordination and Support Services This programme prudent include human, provides administrative support financial management and optimal deployment financial.

knowledge and equipments.

to the Ministry's programmes, ensuring resources.


The resources of It also focuses on related statutory expenses and utilities of maintenance adequate vacancies are advertised and filled on time, to reduce the unemployment the Ministry, the issues of and the current expansion of the Ministerial offices countrywide to ensure shall ensure that office space for all staff members.

Lastly, this activity rate.


Therefore an amount of N$38,028,000 has been budgeted for this programme to bring the request for the Ministry of Mines and energy to N$284,862,000, total budget Honourable Speaker, Honourable Members, I would further appropriation our people.
like to assure Members of for to our Ministry will be utilized prudently and to improve the quality of life of the funds I request this House that I would also like to take the opportunity to express my gratitude to the Minister of Finance, Permanent Secretary and their staff for our budget allocation.
Last but certainly not least, I would like to thank the Ministry of Mines and Energy staff for their commitment and to our partners in the mining and energy sectors that continue to be good corporate citizens.

I thank you.

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